Numbers vs. Value: Commercial Implications of Marginal Customers

  • ID: 3781701
  • Report
  • Region: Global
  • 42 Pages
  • Mobile Market Development Ltd (Wireless Profit)
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FEATURED COMPANIES

  • AT&T
  • Free
  • MTN
  • Orange
  • Spotify
  • Tri (Hutchison)
  • MORE
Many MNOs, especially late entrants to markets, use low prices to acquire customers from competitors and gain market share. In the process they often acquire a significant number of customers that generate little revenue.

This approach can result in reduced profitability for both the new entrant and existing players as the latter respond to competitive pressure by cutting their own prices.

Operators need to understand fully the commercial implications of acquiring and retaining large numbers of customers delivering marginal profitability.

To ensure their ongoing commercial viability MNOs need to find means of increasing the profitability of their customer base. Options include reducing the proportion of marginal customers and increasing the revenues they generate.

This report is essential reading for any MNO facing falling market prices and a growing marginal customer base, and is of particular interest to marketing staff such as the CMO and pricing and product management.
Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • AT&T
  • Free
  • MTN
  • Orange
  • Spotify
  • Tri (Hutchison)
  • MORE
1. Overview

2. Introduction
2.1 Background to the Report
2.2 Report Control
2.3 Currency and Conversions
2.4 Further Questions and Feedback

3 MNO Performance: Indonesia & France
3.1 Introduction
3.2 Financial & Market Performance: Indonesia
3.3 Financial & Market Performance: France
3.4 Impact of Marginal Customers
3.4.1 Size of Marginal Customer Base
3.4.2 Analysis of Impact
3.4.3 Scenario 1: Average Spend
3.4.4 Scenario 2: Low Spending Marginal Customers

4. Emerging Market - Indonesia
4.1 Introduction & Options
4.2 Indonesian Market Development
4.2.1 Subscriber growth
4.3 Repositioning: XL Axiata
4.3.1 Strategy and Pricing
4.3.2 Results of XL Axiata Repositioning
4.4 Additional Services: Indosat Ooredoo
4.4.1 Indosat Approach

5. Developed Market - France
5.1 Introduction & Options
5.2 French Market Development
5.2.1 Penetration and Call Growth
5.2.2 Growth in Data Usage
5.2.3 ARPU and Revenue Trends
5.3 Pricing and Positioning: Free
5.3.1 Tariff Policy
5.3.2 Strategy to Improve EBITDA
5.4 Positioning & Pricing: SFR
5.4.1 High End Market Strategy
5.4.2 Customer Experience
5.5 Impact of Convergence & Quad-play

6. MNO Options & Implementation
6.1 Introduction
6.2 Remaining as Low Cost MNO
6.3 Repositioning in Market
6.4 Additional Services & Revenues
6.4.1 Additional Service Options
6.4.2 Financial Impact of Additional Services
6.4.3 Introducing Additional Services

7. Conclusions
7.1 Summary of Findings
7.2 Marginal Customer Base Size
7.3 Responsibility for Actions

8. Recommendations

9. Appendix - Feedback Questions
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- AT&T
- Bouygues
- Free
- Indosat Ooredoo
- MTN
- Netflix
- Orange
- SFR
- Spotify
- Telkomsel
- Tri (Hutchison)
- Vodafone
- XL Axiata
Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown
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